The answer to the first part of the question posed may be Tesla Inc., the U.S. electric automobile manufacturer founded in 2003 and headquartered in Palo Alto, California. The answer to the second part of the question may be “by matching internal strengths/weaknesses with external opportunity/ threats” using SWOT analysis. For the first time ever, in 2017, Tesla joined the Fortune 500 largest companies in the United States; the company’s annual revenues exceed $7 billion. An integral part of Tesla’s excellent strategic plan is to capitalize on the 6.5 percent annual gross domestic product (GDP) growth in China, compared to the GDP growth of about 2 percent in the United States. Tesla’s sales in China skyrocketed in recent years as CEO Elon Musk of Tesla capitalizes heavily on the firm’s technological prowess (internal strength) matched with China’s booming GDP (external opportunity) and China’s strong preference for electric vehicles (external opportunity). In 2016, sales of electric and plug-in hybrid automobiles in China rose 50 percent to 507,000, more than triple the comparable figure in the United States. Electric vehicles are viewed in China as a way to help clear smoggy skies (an external opportunity), and that is a primary reason why China’s government has ex-empted electric cars from rigid license plate restrictions in six large cities: Shanghai, Beijing, Shenzhen, Hangzhou, Guangzhou, and Tianjin; these six cities report the highest Tesla sales. Tesla’s strategic plan includes manufacturing cars in China by the end of 2018, because shipping cars from California to China is costly. Tariffs and taxes incurred to export cars to China increases the price of Tesla sedans and SUVs by 50 percent (external threat). The number of electric vehi-cle charging stations in China exceeds one thousand (external opportunity). Tesla mass produces its Model X SUV because China’s obsession with SUVs is a decade old and growing rapidly. Sales of SUVs in China now comprise nearly 40 percent of all passenger-vehicle sales in that country. Turning to Australia, Tesla recently supplied the largest battery in the world to Jamestown, Aus-tralia. The battery is storing electricity from a new wind farm that supplies thirty thousand homes with power. The battery has a 100-megawatt capacity. Tesla’s strategic plan is for the whole world to use its batteries in cars, trucks, homes, and businesses.

Questions:

- Identify several internal strengths and weaknesses that face Tesla.

- Match several of your external and internal factors to formulate several strategies that Tesla is (or could) use going forward.

Read the article below. In your opinion is GDP an outdated tool for policymakers? Should GDP be replaced with an alternative measure? What are the pros and cons of the proposed new measures?


Recently, GDP has come under scrutiny as a planning tool, with some decision-makers turning instead to the Happiness Index, a marker that focuses on the wellbeing of the citizens rather than an economic bottom line. This Index would help governments use their budgets with the aim to increase the welfare of its citizens instead of the nation’s Gross Domestic Product.

Gross Domestic Product (GDP) has always been a dependable tool for economic discussions, an index that is used to determine the health of an economy and the wellbeing of a nation. GDP is a measurement of the value of finished goods and services within a country over a specific time frame. A nation’s Gross Domestic Product can then be divided by its population to determine the GDP per capita. This is, in turn, used to make assumptions on standards of living within that country, with the idea that the higher the per capita amount, the better the standards are.

However, GDP has had mixed results when trying to illustrate the welfare of the people. As an economic tool, it only makes assumptions about the basic standards of living, which can be different across the socioeconomic spectrum of a nation. Additionally, better standards of living do not necessarily equate to better welfare, with the latter affected by a range of factors including but not limited to mental wellbeing, cultural resilience, and environmental health.

Nobel Prize-winning economist and designer of the modern GDP Simon Kuznets noted himself in 1934: “The welfare of a nation can scarcely be inferred from a measurement of national income.” GDP, which had been used in one form or another since 1654, was reworked to its current state in 1934 when Kuznets presented a report to the US Congress regarding national wealth. However, as he expressed at the time, it should not be used as more than an economic tool to set an economic value of a country’s production power, and that equating GDP to citizen welfare would be over-simplifying a very complex situation.

The Kingdom of Bhutan became the first nation to test a Gross National Happiness Index in 2008. Bhutan started to measure factors including psychological health, living standards, community vitality as well as environmental and cultural resilience - which the government would then use these metrics to inform its policies. Creative accurate measurements for these factors that are easy to measure is often challenging, an excuse often given for avoiding them altogether.

The New Zealand Project

New Zealand Prime Minister Jacinda Ardern is the latest leader to adopt the Happiness Index metric, announcing a new budget that focused on improving the prosperity of local communities. Ardern hoped that it would: “(lay) the foundation for not just one well-being budget, but a different approach for government decision-making altogether.” As part of the budget, there will be an increase of NZ$200 million (US$131 million) in services aimed at helping victims of domestic and sexual violence as well as housing programs for the nation’s homeless population. Described as a “game-changing event” by London School of Economics Dr. Richard Layard, New Zealand’s budget has set a new standard for progressive policy “no other major country that has so explicitly adopted well-being as its objective.”

ASSOCIATED PRESS

After unveiling New Zealand’s new economic framework, the center-left government also explained the basis behind their shift in focus. All new spending must advance one of five government priorities: improving mental health, reducing child poverty, addressing the inequalities faced by indigenous Maori and Pacific island people, thriving in a digital age, and transitioning to a low-emission, sustainable economy. New Zealand’s change in policy represents a shift that economists have long theorized could be a more effective use of government spending .

The 4.9-million strong nation has a long history of progressive policy-making and defending its interests against international superpowers, and as Max Harris lays out in his book The New Zealand Project, it makes it the ideal nation to lead a change in global views. In his 2017 publication, Harris explains how the island nation would be better served working towards integrating traditional community values focusing on collective welfare in order to tackle large issues such as climate change or social inequality. Harris’ vision for a better, happier and more cohesive New Zealand is now a step closer to being fulfilled, with Jacinda Ardern’s new wellness budget.

Communities Over Economics

As Finance Minister Grant Robertson points out, the economic growth of a nation should not come at the cost of its citizens: “Sure, we had – and have – GDP growth rates that many other countries around the world envied, but for many New Zealanders, this GDP growth had not translated into higher living standards or better opportunities. How could we be a rockstar, they asked, with homelessness, child poverty and inequality on the rise?”

ASSOCIATED PRESS

Robertson’s statement summarizes the views of many governments worldwide, who are increasingly looking to create happier communities “For me, wellbeing means people living lives of purpose, balance, and meaning to them, and having the capabilities to do so.” From the United Kingdom to Bhutan, the Happiness Index has been adopted in various forms in order to improve the welfare of the general population, while also re-prioritizing the use of a nation’s economic powers. New Zealand’s decision to embrace it as a defining part of their national budget has started debates internationally to determine whether this new approach may be the most effective for both communities and their respective economies.

GDP may be an outdated metric when it comes to determining the welfare of a nation’s populace and although it presents an accurate indication of a country’s economic health, its role as a key budgetary tool. As nations increasingly move towards transitions toward sustainable development and efficient energy policies and technologies, the use of the Happiness Index could help spur investment in projects that improve the community, the economy, and the environment. New Zealand has always been at the forefront of change throughout the ages, and it is poised to continue its ways by pioneering a community-centered economic plan.

The following situations involve potential violation of the general ethical principles as outlined in APES 110 .You are asked to advise whether they involve a violation or not of the ethical principles 
and if there is a violation explain which ethical principle has been violated and the reason(s)why it is or isn’t a violation .

1) Six small chartered accounting firms have been taking part in a quality assurance working paper review program.Under this review each firm reviews the working papers of another firm and the reviewer discusses the strengths and weaknesses of the audit with the auditor from the other firm.

2)    Bill Holland , a chartered accountant ,sets up a casualty and fire insurance agency to complement 
his auditing and tax services .He doesn’t use his own name on anything relating to insurance agency 
and has a highly competent manager,Simone Taylor, who runs it .Holland often requests that Taylor review the adequacy of the client’s insurance with management if the client seems underinsured .

3)    Emma Lawrence , a public accountant in a small country town,provides tax services,management advisory services ,bookkeeping services and conducts audits for the same client .Since the firm is small the same person often carries out all the services.    

As a vice president of a financial services company, you serve many clients, and they sometimes ask your company to contribute to their favorite charities. You recently received a letter from Elliana Larios asking for a substantial contribution to the National Court Appointed Special Advocate (CASA) Association. On visits to your office, she has told you about its programs to recruit, train, and support volunteers in their work with abused children. She herself is active in your town as a CASA volunteer, helping neglected children find safe, permanent homes. She told you that children with CASA volunteers are more likely to be adopted and are less likely to reenter the child welfare system.

You have a soft spot in your heart for children and especially for those who are mistreated. You sincerely want to support CASA and its good work. But times are tough, and you can't be as generous as you have been in the past. Ms. Larios wrote a special letter to you asking you to become a Key contributor, with a pledge of $ 2,000.

YOUR TASK Write a refusal letter that maintains good relations with your client. Address it to Ms. Elliana Larios, 8569 East 39th Street, Phoenix, AZ 85730.

A. Mike owns a restaurant and hires Alex to be the evening manager. Mike discovers the restaurant is running low on coffee and tells Alex to go across the street to Terry’s Market to buy some more. As Alex departs, Mike calls Terry to tell him to expect Alex, and to charge the coffee to Mike’s account. Is Mike liable for the amount of the coffee purchase? Under which type of authority?

What if Mike had not called Terry? Would Mike still be required to pay for the coffee?

B. Later that month, Mike is out of town, and Alex is in charge of the restaurant for the evening. Alex notices that ketchup is in short supply, and goes to Terry’s Market and charges $60 worth of ketchup to Mike’s account. Is Mike liable for the amount of the ketchup purchase? Why or why not?

What if Alex had gone to Quinn’s Market instead, where there was no customer relationship? Is Mike still liable for the amount purchased?

What if Alex had purchased $100,000 worth of kitchen equipment without asking Mike? Is Mike liable?

C. Later that year, Mike terminates Alex’s employment. In retaliation, he goes to Terry’s Market and charges $300 worth of groceries to Mike’s account and takes them home. Is Mike liable for these charges? Why or why not?

Case Study

How would you respond in each of the following situations? If you can, please relate to situations you have witnessed/experienced in your clinical/work experiences.

Question 1

You were out with friends until very late last night and had to report for work this morning at 7 a.m. You know that your coworkers won’t arrive for another half hour. You’ve got just enough time for a quick run to the corner coffee shop before your coworkers arrive.

Question 2

You promised your coworkers that you would work the day shift on Thanksgiving so they could be home with their families. Two days before the holiday, an old friend from out of town calls to say that he would like you to be his guest for lunch on Thanksgiving Day.

Question 3

You have an appointment with your supervisor next week to review the results of your annual performance evaluation. You overhear one of your teammates telling another individual that she gave you a low score on your 360-degree feedback evaluation because you refused to trade shifts with her over the Easter weekend.

Zach is a 5-year-old boy who recently split his chin open after tripping on the sidewalk, and he was rushed by his parents to the emergency room at a nearby hospital. Although an MRI revealed that Zach needed only stitches and some mild pain medication, his medical bill for the hospitalization and tests totaled $4,178. Zach is covered under his parents' insurance policy, which has a $200 hospital stay deductible and a coinsurance rate of 20%. His parents can therefore expect a reimbursement from the insurance company of $ _________ (Note: Round your answer to the nearest dollar.)

Complete each statement that follows with the appropriate insurance term.

Zach's fall was completely unexpected and therefore insurable. This is an example of: a. Physical hazard b. fortuitous loss c. speculative risk d. morale hazard e. moral hazard It is easier for the insurance company to predict the risk associated with an entire town than to predict the risks of a given individual. This reflects the: a. law of large numbers   b. principle of indemnity c. large-loss principle

Because Zach is young and has no history of medical conditions, he is a part of the: a. substandard b. preferred c. desirable class of insured.

Marty’s Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university town. Marty owns three frozen-yogurt machines. His other inputs are refrigerators, frozen-yogurt mix, cups, sprinkle toppings, and, of course, workers. He estimates that his daily production function when he varies the number of workers employed (and at the same time, of course, yogurt mix, cups, and so on) is as shown in the accompanying table.

a. What are the fixed inputs and variable inputs in the production of cups of frozen yogurt?

b. Draw the total product curve. Put the quantity of labor on the horizontal axis and the quantity of frozen yogurt on the vertical axis.

c. What is the marginal product of the first worker? The second worker? The third worker? What pattern does the marginal product exhibit for this data?

d. Find the average product for each amount of labor. Do you think, is there any amount of labor where both marginal and average product are equal? If yes than where, and if not than why?                                                                                                                                                             

Your friend has decided to make some money during the next State Fair by inventing a game of skill. In the game, as she has developed it so far, the customer shoots a rifle at a 5.0 cm diameter target falling straight down. Anyone who hits the target in the center wins a stuffed animal. Each shot would cost 50 cents. The rifle would be mounted on a pivot 1.0 meter above the ground so that it can point in any direction at any angle. When shooting, the customer stands 100 meters from where the target would hit the ground if the bullet misses. At the instant that the bullet is fired (with a velocity of 1200 ft/sec according to the manual), the target is released from its holder 7.0 meters above the ground. (You see, the trigger is electronically connected to the release mechanism.) Your friend asks you to try out the game which she has set up on a farm outside of town. Before you fire the gun you calculate where you should aim. You may, as usual, neglect any effects of air resistance. Your conclusion? At what angle from the vertical should you aim?